Intel’s  billion ‘Ohio One’ project in Licking County delayed until at least 2030
semiconductor

Intel’s $28 billion ‘Ohio One’ project in Licking County delayed until at least 2030

Intel has announced adjustments to the construction timeline for its semiconductor manufacturing facilities in New Albany.

Naga Chandrasekaran, executive vice president and chief global operations officer, informed employees of the revised completion dates for the Ohio One Mod 1 and Mod 2 projects.

The company plans to complete the construction of Mod 1 in 2030, with operations beginning between 2030 and 2031. Mod 2 is expected to be completed in 2031, with operations starting in 2032.

“I continue to be impressed by the progress you are driving on our Ohio One campus,” Chandrasekaran said. “We have come a long way since construction began, and I am grateful for all that you’ve accomplished to lay the groundwork for our future as we make Ohio one of the world’s leading hubs of advanced semiconductor manufacturing.”

The company achieved a significant milestone last quarter with the completion of the “basement” level of the fab, allowing work on the above-ground structure to commence. Chandrasekaran highlighted the transformation of the campus and the broader impact on the community.

“You are also doing so much beyond our campus to support Ohioans in our neighborhood and across the state by creating education and workforce development initiatives, building local business partnerships, and volunteering and investing in the community,” Chandrasekaran added.

Chandrasekaran emphasized a prudent approach to the project, saying, “We are taking a prudent approach to ensure we complete the project in a financially responsible manner that sets up Ohio One for success well into the future.”

Despite the adjusted timeline, Intel remains committed to Ohio, continuing to hire and train Ohioans at its facilities in Arizona, New Mexico, and Oregon. Chandrasekaran expressed gratitude for the support received from local and state officials, including Gov. Mike DeWine and U.S. Sen. Jon Husted, as well as community members.

“We remain committed to investing in the community and fostering long-term partnerships that drive growth and opportunity,” Chandrasekaran said. “Projects of this scale and complexity always come with twists and turns along the way, but the end state is one we will all be proud of for decades to come.”

In an interview with ABC 6, Kate Siefert asked Kenny McDonald, the President & CEO of One Columbus, if he was confident Intel would follow through with the promises it has made to the state of Ohio.

“Yes. None of these things take a straight path,” McDonald said. “They (Intel) have been an awesome partner and continue to make massive investments. Some of the announcements I have seen in the chip industry have not progressed the same as Intel. We signed up for the long term. Knowing that this is an industry that goes in cycles and has some ups and downs. We believe wholeheartedly, very strongly, that the need for advanced semiconductor capacity to be built in the US has never been more important.”

JobsOhio also released a statement to ABC6 regarding Intel’s recent timeline adjustments:

Although Intel’s timeline has moved to address market realities, the commitment to creating at least 3,000 jobs and $20 billion in capital investment while continuing construction of its most advanced chip production fabs on Earth in Ohio remains unchanged. One of the competitive advantages of choosing Ohio is that we are a flexible partner with the ability to work alongside Intel as it moves the project forward on its adjusted timeline, placing Ohio at the center of cutting-edge semiconductor production that is essential to American national economic security and national defense.”

Ohio Gov. Mike DeWine’s office also shared a statement via spokesman Dan Tierney:

While we are disappointed the plants will not open sooner, construction continues at the Ohio Intel site and the company has continued to tell the state the fabs will be completed and produce chips. This is a construction delay. The project is moving forward.

Senator Husted’s office also shared a statement:

We need to build chips in America, and this site is going to be instrumental to the Made in America strategy. The market and geopolitical events can always impact the timing, but with over $6 billion already invested in this site, it’s going to happen.

In November, Intel was awarded $7.86 billion in funding as part of the federal CHIPS Incentives Program. According to the U.S. Department of Commerce, at least $1.5 billion of that funding was set to go toward the Ohio One project.

Johnstown business owner and city council member, Tiffany Hollis, said the project delay gives the city more time to prepare.

“There is an element of disappointment and shock to it,” Hollis said. ” But we just have to look at it as an opportunity to grow our business and it give us a chance to pump the breaks and do this.”

While you may not have wanted Intel to come, the reality is, it’s here and we really need them to cross the finish line for our community and the partnership we have developed. – Tiffany Hollis

“Now we have time,” Johnstown Chamber of Commerce co-founder Andria Coppel said. “We have more time to be sustainable. We have more time to really plan. We have time for everyone to take a deep breath and really think about what is going to make the city of Johnstown better.”

The delay comes amid other controversies for Intel. Last year, the company announced it would have to cut 15% of its workforce. The company’s CEO, Pat Gelsinger, also stepped down in December.

There have also been concerns over a possible foreign buyout. ABC6 asked McDonald about those rumors.

“We are not focused on that as much,” McDonald said. “We are focused on the strategy and long-term intent. Those are decisions that are outside of our control. We are very aware, and we deal with this with a lot of the companies that we work with. Private equity may come in and buy a company, brand changes and stuff like that.”

Intel told ABC6 it would not be participating in any interviews on Friday.

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